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Structuring an International Treaty Co-Production or a CRTC Co-Venture

March-6-2012

Lawyer David Zitzerman
Area Entertainment

Summary

Article originally published in Insight 5th Edition, Entertainment Law:  Best Practice and Lessons Learned

Excerpt from "Structuring an International Treaty Co-Production or a CRTC Co-Venture":

This paper outlines the key factors to be considered by a Canadian producer in deciding whether or not to structure a film or television co-production with a non-Canadian producer as (a) an international treaty co-production certified by Telefilm Canada, or (b) a “co-venture” certified by the Canadian Radio-television and Telecommunications Commission (“CRTC”) in accordance with the rules and requirements set out in Appendix 1 to Public Notice CRTC 2000-42 (the “CRTC Public Notice”).  It is hoped that the paper will provide some guidance for Canadian producers and their advisors in determining which structure is the right choice for any particular production.  The discussion begins with a brief description of the international treaty co-production structure and the related role of Telefilm Canada in administering co-productions.  This is followed by a discussion of the role of the CRTC and Canadian broadcast quotas in the CRTC co-venture structure, the definition of a “Canadian program” for CRTC purposes and the basic requirements for certification of a CRTC co-venture.  In each case, I cover the respective advantages and disadvantages of choosing a particular structure, the availability of Canadian film and television tax credits in respect of each structure, and provide some practical suggestions regarding the selection of the optimal structure for a particular production.

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